City of San Buenaventura
Comprehensive Annual Financial Report
For the year ended June 30, 2019
Table of Contents
Introductory Section Page
Letter of Transmittal iv
Certificate of Achievement x
List of Officers and Elected Officials xi
Organizational Chart xii
Financial Section
Independent Auditors' Report 1
Management Discussion and Analysis 4
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 17
Statement of Activities 18
Fund Financial Statements:
Government Fund Financial Statements:
Balance Sheet 20
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position 21
to the Government-Wide Statement of Net Position 21
Statement of Revenues, Expenditures and Changes in Fund Balances 22
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Government-Wide Statement of Activities 23
Changes in Fund Balances to the Government-Wide Statement of Activities 23
Proprietary Fund Financial Statements:
Statements of Net Position 24
Statement of Revenues, Expenses and Changes in Net Position 25
Statement of Cash Flows 26
Fiduciary Fund Financial Statements:
Statement of Net Position 28
Statement of Changes in Net Position 29
Notes to the Financial Statements 30
Required Supplementary Information (unaudited):
Schedule of Changes in the Net Pension Liability and Related Ratios - Miscellaneous Plan 83
Schedule of Contributions - Miscellaneous Plan 84
Schedule of Changes in the Net Pension Liability and Related Ratios- Safety Plan 85
Schedule of Contributions - Safety Plan 86
Budgetary Information 87
Schedule of General Fund Budget Comparison:
Supplementary Information (unaudited)
Non-Major Governmental Funds:
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City of San Buenaventura
Comprehensive Annual Financial Report
For the year ended June 30, 2019
Table of Contents, Continued
Combining Balance Sheet 89
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92
Schedule of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual:
Measure O - Transaction & Use Tax Fund 95
Gas Tax Fund 96
Transportation Fund 97
Transportation Development Act Program Funds 98
Law Enforcement Funds 99
General and Categorical Grants Fund 100
Housing & Community Development Block Grants Fund 101
Public Art Fund 102
Downtown Parking District Fund 103
Maintenance Assessment District Fund 104
Street Lighting District Fund 105
Successor Housing Agency FundNote 4........................................ 106
Capital Program Funds 107
Debt Service Fund - Parking Structure 108
Debt Service Obligation Fund 109
Internal Service Funds:
Combining Statement of Net Position 110
Combining Statement of Revenues, Expenses and Changes in Net Position 112
Combining Statement of Cash Flows 114
Fiduciary Funds:
Combining Statement of Assets and Liabilities 116
Combining Statement of Changes in Assets and Liabilities 117
Statistical Section (unaudited)
Index to the Statistical Section 118
Statistical Section:
Financial Trends
Net Position by Component - Last Ten Fiscal Years 120
Changes in Net Position - Last Ten Fiscal Years 121
Fund Balances of Governmental Funds - Last Ten Fiscal Years 123
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 124
Revenue Capacity
Assessed Value of Taxable Property 125
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 126
Principal Property Taxpayers - Current Year and Nine Years Ago 127
Property Taxes Levies and Collections - Last Ten Fiscal Years 128
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City of San Buenaventura
Comprehensive Annual Financial Report
For the year ended June 30, 2019
Table of Contents, Continued
Debt Capacity
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 129
Direct and Overlapping Debt - June 30,2019 130
Legal Debt Margin Information - Last Ten Fiscal Years 131
Pledged Wastewater Coverage - Last Ten Fiscal Years 132
Pledged Water Revenue Coverage - Last Ten Fiscal Years 133
Demographic and Economic Information
Demographic and Economic Statistics - Last Ten Calendar Years 134
Full-time City Employees by Function - Last Ten Fiscal Years 135
Principal Employers - Current Year and Nine Years Ago 136
Operating Information
Operating Indicators - Last Ten Fiscal Years 137
Capital Assets Statistics by Function - Last Ten Fiscal Years 138
Wastewater Service Rates - Last Ten Fiscal Years 139
Wastewater Customers - Current Year and Nine Years Ago 140
Water Sold by Type of Customer - Last Ten Fiscal Years 141
Water Rates - Last Ten Fiscal Years 142
Water Customers - Current Year and Nine Years Ago 143
Annual Continuing Disclosure Requirements Section (unaudited):
Annual Continuing Disclosure Requirements Public Facilities Financing Authority 144
Public Facilities Financing Authority - Summary of Certificates of Participation 145
2012 COP, Wastewater Revenues - Historic Operating Results 146
2012 COP, Wastewater Revenues - Historic Usage, Connections, and Flow Charges 148
2012 COP, Wastewater Revenues - Top Ten Customers 149
Annual Continuing Disclosure Requirements, Continued
Historic Water System Deliveries in Acre Feet Per Year 150
Historic Water System Deliveries in Acre Feet Per Year 150
2012 COP, Water Revenue - Historic Operating Results 151
2012 COP, Water Revenue - Historic and Projected Water Supply 153
2012 COP, Water Revenue - Historic Service Charges and Sales Revenues 154
2012 COP, Water Revenue - Top Ten Customers 155
2012 COP, Water and Wastewater - Utility Rates 156
Employee Relations and Collective Bargaining 157
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2020/11/24 1:25 PM
City of San Buenaventura
Management's discussion and analysis
For the year ended June 30, 2019
This section of the City of San Buenaventura’s Comprehensive Annual Financial Report (CAFR) presents management’s discussion and analysis of the City’s financial performance during the fiscal year ended on June 30, 2019. In addition to this overview and analysis, the City would encourage readers to consider the information presented in the City’s letter of transmittal and the City’s financial statements.
FINANCIAL HIGHLIGHTS
∙Government-wide assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2019 by $286.8 million (net position); an increase of $12.3 million (4.3%) from the previous year. The Citywide net position increase is derived from no change in governmental activities and an increase of $12.3 million from business-type activities.
∙At year end, Government-wide general revenues exceeded total expenses by $8.0 million. Revenues totaled $217.7 million, which is an increase of $2.1 million from the prior year. Of this increase, governmental general revenues decreased $6.7 million while business-type general revenues increased $8.8 million. Government-wide expenses totaled $209.5 million, which is an increase of $9.5 million from the prior year. Of this increase in expenses, governmental expenses decreased $2.2 million while business type activities expenses increased $11.7 million.
∙The general fund, the City’s primary operating fund, ended fiscal year 2019 with a fund balance totaling $41.7 million, an increase of $4.0 million from the prior year. The fund balance consists of $13.3 unassigned fund balance; $7.5 million assigned fund balance; $15.1 million in committed fund balance; $2.7 million restricted fund balance; and $3.1 million non-spendable fund balance.
∙All other governmental funds ended fiscal year 2019 with a combined fund balance of $74.6 million, an increase of $9.0 million from the previous year. Other governmental funds fund balances consist of $(0.3) unassigned fund balance; $8.7 million assigned fund balance; $3.3 million in committed fund balance; and, $63.0 million restricted fund balance.
∙The City’s enterprise funds, consisting of Ventura Water and Wastewater, had an overall year end net position of $246.3 million, which is an increase of $27.9 million from the previous year. The enterprise funds had combined revenues totaling $70.3 million and expenses totally $52.4 million. This is an increase of $3.7 million and an increase of $7.7 million, respectively.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s basic financial statements are comprised of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. Each of these sections is discussed below. This report also contains other required and supplementary information in addition to the basic financial statements themselves. This report also includes the annual continuing disclosure requirements.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s financial condition and are prepared similarly to those in the private sector. The government-wide financial statements separate functions that are primarily supported by taxes and charges for services (governmental activities) from functions that are supported by user fees (business-type activities). Governmental activities include City Council, City Manager’s office, City Attorney’s office, City Clerk’s office, and the departments of Finance & Technology, Human Resources, Community Development, Police, Fire, Parks Recreation & Community Partnerships (includes the City’s two municipal golf courses), Public Works, and Non-Departmental (city-wide) activities. Business-type activities include Water and Wastewater.
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Overview of the Financial Statements (continued)
Government-wide Financial Statements (continued)
The government-wide financial statements include not only the City of San Buenaventura (known as the primary government), but also includes the Public Facilities Financing Authority as a legally separate component unit. The governing board of this entity is comprised entirely of members of City Council, and its financial activity has been included as an integral part of the primary government.
The Statement of Net Position presents information on all City assets, liabilities and deferred inflows/outflows of resources with the difference reported as net position. Over time, continued increases or decreases in net position may serve as a useful indicator of whether the City’s financial condition is improving or deteriorating.
The Statement of Activities presents information on how the City’s net position changed during the most recent fiscal year. These changes are reported on the full accrual basis when the economic event occurs (not when the cash is received or paid). Government-wide Financial Statements can be found in the Government-Wide Section, pages 17-19.
Fund Financial Statements
The City separates financial activities into funds to maintain control over resources that have been legally separated by an external authority or by the City Council. All City funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds - Governmental funds are used to report essentially the same functions as reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Fund financial statements are prepared on the modified accrual basis of accounting. This basis of accounting means that revenues are recognized when they become measurable and available and expenditures are recognized when the related fund liability is incurred, except for long-term debt and similar long-term items which are recorded when due. Therefore, the focus of the governmental fund financial statements is on near-term inflows and outflows of spendable resources as well as on the balance of spendable resources available at the end of the fiscal year.
It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. To facilitate this comparison, reconciliation's are provided for both the governmental fund balance sheet and the governmental statement of revenues, expenditures, and changes in fund balances. Governmental Funds Financial Statements can be found in the Fund Financial Statement Section, pages 20-23.
Proprietary Funds - Proprietary funds are used to account for services provided to external customers or other City departments and funds that are primarily funded from user fees and charges. Proprietary funds use the accrual basis of accounting and measure the balance and change in total economic resources. Accordingly, balance sheets of proprietary funds include all assets and liabilities, including long-term receivables, capital assets, and long-term liabilities. The basis of accounting and measurement focus used to prepare proprietary fund statements is the same that is used to prepare the government-wide statements. Thus, proprietary fund statements provide the same, but more detailed, information about these funds, which are included in the “Business-Type Activity” column of the government-wide statements. Proprietary Fund Financial Statements can be found in the Fund Financial Statements, pages 24-27.
The City maintains two different types of proprietary funds:
∙Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Water and Wastewater Funds. Water and Wastewater Funds are classified as major funds.
∙Internal Service Funds are used by the City to account for its intracity services: information technology services, fleet services, building maintenance services, digital publishing services, workers’ compensation, employee fringe benefits, and risk management. Because internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Internal service funds are combined into a single, aggregated
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presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section.
Overview of the Financial Statements (continued)
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support City programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City maintains two different types of fiduciary funds, the Redevelopment Successor Agency Private Purpose Trust Fund and the Property Based Improvement District Agency Fund. The private purpose trust fund is used to account for the winding down of the former Redevelopment Agency. The agency fund is used to account for the funds held in trust by the City as collected from property assessments to be used specifically for improvements and maintenance of the downtown improvement district. Fiduciary Fund Financial States can be found int he Fund Financial Statements, pages 28-29.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Notes to the Basic Financial Statements can be found in the Notes Section, pages 32-83.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City’s progress in funding the obligation to provide pension benefits to City employees and General Fund budgetary comparison schedules which can both be found on pages 82-87. The combining statements, referred to earlier in connection with non-major governmental funds are located on pages 88-108, and Internal Service Funds are located on pages 109-114. Combining Statements of Agency Funds can be found on pages 115-116.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position represents the difference between the City's resources and its obligations. As noted earlier, net position may serve as a useful indicator of a government's financial condition. The City’s assets and deferred outflows exceeded its liabilities and deferred inflows by $286.8 million at the close of fiscal year 2019, an increase of $12.3 million from the prior year. The Government-wide financial statements present both the short term (current) and the long term financial activities of the City. The following graphs and tables address the financial results of the City as a whole.
The City has positive balances in two of the three categories of net position – net investment in capital assets and restricted. The negative balance of unrestricted net position reflects pension obligations, net investment in capital assets, restricted and unrestricted, which are reported in accordance with GASB 68.
The largest portion of the City’s net position, $231.3 million, reflects its investment in capital assets less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s net investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net position at year end equaled $195.8 million and is subject to restrictions imposed by external parties; therefore, their use is determined by those restrictions and contractual agreements. As noted earlier, the deficit unrestricted net position of $140.2 million is largely due to the implementation of Governmental Accounting Standards Board (GASB) Statement Number 68. Additional information on GASB 68 can be found in the Notes to the Financial Statements, Note 13 as well as in the Required Supplementary Information section of this document.
Government-wide governmental operations program revenues decreased by $5.2 million from the previous year, largely due to the decrease in Thomas Fire disaster related grant reimbursements from Federal Emergency Management Agency (FEMA) and the California Office of Emergency Services (CalOES). In addition, there was a decrease in operational expenses totaling $2.2 million, also largely due to the Thomas Fire disaster related damage repair expenses decreasing from the previous year.
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Government-wide general revenues increased by $6.9 million, largely due to $1.9 million increase in property taxes, a $2.4 increase in sales taxes, and a $3.2 million increase in investment and interest earnings.
Business-type operating revenues (water and wastewater combined) increased slightly by $0.5 million while Business Type expenses increased by 12.2 million . The increase in expense is largely due to $4.9 million increase in salaries and benefits and an increase of $8.1 million in contractual services. Both types of expenses were due to increased staffing and increased spending on capital improvement projects.
See Table below for governmental and business-type activities summary of assets and liabilities and the following table for a summary of revenues and expenses.
Government-wide Statement of Net Position
As of June 30, 2019
(in millions)
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Government-wide Financial Analysis (continued)
Government-wide Statement of Activities
As of June 30, 2019
(in millions)
FUND FINANCIAL ANALYSIS
Governmental Fund Revenue Highlights
Total revenues of governmental activities were $150.3 million, a decrease of $(7.4) million from the previous year. The largest component of total revenue is taxes totaling $90.4 million, making up 60.2% of total revenues. This is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general taxes. The highest tax revenues received by the General Fund include property tax ($27.7 million), sales tax ($26.8 million), and utility users tax ($7.6 million). Some of the key changes in governmental revenues are:
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Fund Financial Analysis (continued)
Governmental Funds Revenue Highlights (continued)
∙Property tax revenues increased by $2.0 million or 5.5%, compared to the prior year, primarily due to increasing property values and new developments.
∙Sales tax revenues increased by $13.9 million or 53.5% compared to the prior year. In prior years, the City's Measure O Sales and Use Tax had been presented in the Other Taxes category. For fiscal year 2018-19 and thereafter, those revenues will be reported in the category for general sales tax.
∙Charges for services increased by $0.8 million or 2.5% with the largest increases coming form charges for services related to General Government, Community Development, and Parks, Recreation & Community Partnerships. It is also noteworthy that the increases in these areas were partially offset by decreases related to Police and Fire.
The governmental activities’ charts below illustrate revenues by category and percentage of total revenues by category.
Governmental Funds - Revenues
Value by Function $145 Million
Governmental Funds - Revenues
Percentage by Function
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Fund Financial Analysis (continued)
Governmental Funds Expenditure Highlights
Functional expenditures for the year totaled approximately $133.0 million in the governmental funds, a decrease of $1 million from the prior year. Most departments increased their functional expenditures; however, debt service and public works had a slight decrease. As with previous years Public Safety (Police and Fire) activities consumed the largest portion of appropriations in the combined amount of $60.6 million, 47% of the total expenditures in the governmental activities, a slight increase from the previous year of $56.6 million.
Governmental Funds - Expenditures
Value by Function $139 Million
Governmental Funds - Expenditures
Percentage by Function
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PROPRIETARY FUND FINANCIAL ANALYSIS
The City's Proprietary Funds include the City's Enterprise Funds and the Internal Service Funds. The City uses enterprise funds to account for its water and wastewater activities.
Enterprise Funds Highlights
Enterprise Funds combined Net Position was $246.3 million at year end compared to the Net Position of $218.4 million the previous year; this is an overall increase in net position of $27.9 million. The City’s wastewater fund net position increased by $7.8 million and its water fund had a net position increase of $20.0 million as compared to the prior year of $3.2 million and $4.2 million respectively.
Combined revenues totaled $70.3 million, as compared to the previous year which totaled $66.6 million an increase of $3.7 million or 5.3%. Wastewater revenues increased by $3.0 million and Water revenues increased by $0.7 million.
Combined expenses for the enterprise funds increased by $7.7 million as compared to the previous year. Of this increase Wastewater expenses increased by $4 million and Water expenses decreased by $2.1 million.
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GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund Revenues
The General Fund is the main operating fund of the City. Its revenues are primarily derived from taxes and intergovernmental sources, which are used to pay for the traditional services provided by local government public safety (police & fire), parks and recreation, community development (building and planning), and public works.
General Fund revenues were $2.7 million less than the annual budget; largely contributable to lower collections in other revenues. The General Fund revenues and other financing sources totaled $119.0 million in fiscal year 2019 as compared to $116.1 in the previous year; an increase of $2.9 million.
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General Fund Budgetary Highlights, (continued)
General Fund Charges to Appropriations
Overall the General Fund ended the year within its spending authority with unspent appropriations equaling $6.6 million. Total expenditures for the General Fund totaled $115.4 million dollars, a decrease of $(1.3) million from the previous year which totaled $116.7 million. The chart below shows each general fund function and its charge to appropriations for the fiscal year ended June 30, 2019.
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The General Fund’s fund balance increased by $4.0 million at year end with a total fund balance of $41.7 million as compared to the prior year fund balance of $37.7 million. The largest fund balance increase occurred in unassigned fund balance, $2.2 million. Committed fund balance increased $1.0 million.
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City owns capital assets that require ongoing maintenance, improvement, major renovation and replacement. As a result, the City undertakes millions of dollars in capital improvement and construction projects each year.
The capital improvement projects undertaken in those operations in the Governmental Activities category typically include improvements to the City’s infrastructure (roads, curbs, storm drains, bridges, sidewalks, gutters, etc.) and improvements to City public facilities, such as parks, restrooms, community facilities, and playgrounds. As of June 30, 2019, the City’s total infrastructure and public facilities assets, net of accumulated depreciation, totaled $347.5 million. An increase of assets from business-type activities in the amount of $167.6 million is seen below and is the primarily the result of an increase in spending for ongoing construction projects.The net of non-current assets, liabilities and related deferred inflows/outflows of resources is not reportable in the governmental activities; however, it will be shown in the government-wide financial statements. Detailed information can be found in the Notes to Basic Financial Statements, Section, Note 5, located on pages 56-57.
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Long-Term Obligations
At June 30, 2019, the City has several debt issues outstanding and reported total long-term debt of $164.5 million. Of this amount, $128.6 million relates to revenue bonds and other long-term obligations of the City's business activities and $36 million is attributable to governmental debt issued.
The City’s debt increased by $20.5 million during the current fiscal year and the City did not issue new debt during the fiscal year. The City Charter states that the City shall not incur an indebtedness evidenced by general obligation bonds greater than 15% of the total assessed valuation of all real and personal property within the City. The level of debt is significantly below Charter requirements. Detailed information can be found in the Notes to Basic Financial Statements Section, Note 7, pages 58-66.
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THE YEAR AHEAD - BUDGET AND ECONOMIC FACTORS
The City develops a two-year budget; however, the Council adopts the City’s operating and capital improvement budgets annually. On June 24, 2019, the City Council adopted a balanced budget for the fiscal year 201920. The City’s fiscal year runs from July 1st through June 30th each year. The 2019/20 Adopted Operating Budget is $240.9 million and the Capital Improvement Budget of $60.6 million, for a total combined budget of $301.5 million.
Designed with the best interest of the City’s citizens in mind, the adopted budget for fiscal year 201920 Operating and Capital Improvement Budget is balanced and focuses on funding the City Council’s priorities:
The City’s Strategic or Long-range Plan is created under the guidance of the City Council, City Manager, and services as the foundation for the budgeting process. Identified operational and capital improvements are then prioritized and performance measures are developed to track progress of each strategic goal. Resources are then allocated to each project and the proposed budget is developed. The Budget encompasses 35 different funds, including the General Fund, as well as Enterprise funds: Water and Wastewater. The citywide budget must be balanced and each individual fund must also be balanced.
Budget preparation begins with revenue projections. To make those projections as accurate as possible, six techniques are used, depending upon the unique characteristics of each revenue source:
∙Deterministic Techniques (i.e. month-to-month trend analysis)
∙Time Series Techniques (i.e. moving averages)
∙Econometric Models (i.e. predictive statistics)
∙Informed/Expert Judgment (i.e. advice of expert staff)
∙Estimates from other governmental agencies (i.e. property valuation estimates)
∙Estimates from staff, subject matter experts, consulting firms (i.e. sales tax projections)
Additional resources that the City uses include information from the League of California Cities, MuniServices Economic Overview, and other data available from the State of California, County of Ventura, sales tax local regional trends, U.S. Department of Labor and other Federal agencies.
During the development of the fiscal year 2019/2020 budget, City staff completed a comprehensive analysis of City operations and capital improvement needs and identified the areas where gaps in capital investment and city services exist. City Council goals factored heavily in the development of the budget. The budget document describes what the City plans to accomplish in the upcoming year, while the analysis identified additional areas the City will not be able to complete.
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The Year Ahead - Budget and Economic Factors, (continued)
City of Ventura Fiscal Year 2018-2019 Budget Summaries (adopted):
Citywide The citywide budget encompasses 37 different funds, including the General Fund, as well as the Water and Wastewater Enterprise funds. The citywide budget must be balanced, and each individual fund must also be balanced.
For Fiscal Year 2019-2020, the City has budgeted to receive $301.5 million in total revenue. The top three revenue sources for the City make up $207.5 million, or approximately 69% of the City’s budgeted revenues:
∙Charges for Services – 32% of the City’s total revenue and are budgeted at $96.7 million.
°Water Fund $33.7 million
°Wastewater Fund – $22.1 million
°Internal Service Funds $21.4 million
°General Fund $14.5 million
°Other Funds $4.8 million
∙Taxes – 30.8% of the City’s total revenue and are budgeted at $92.9million.
°Property Tax $27.3 million
°Sales Tax $27.0 million
°Measure O Transaction and Use Tax – $13.5 million
°Utility Tax - $7.9 million
°Transient Occupancy Tax - $6.2 million
°Franchise Fees - $4.3 million
°Cardroom Tax - $2.0 million
°Business Licensing Tax - $1.9 million
°Other Taxes - $2.8 million
∙Other Agencies – 5.8% of the City’s total revenues and are budgeted at $17.6 million.
°Motor Vehicle in-Lieu Fees $10.4 million
°Gas Tax $4.7 million
°Other Sources - $2.5 million
For Fiscal Year 2019-2020, the budgeted expenditures are $301.5 million citywide, creating a balanced budget. Listed below are the appropriations for each department.
°Ventura Water - $104.1 million
°Public Works - $49.2 million
°Police - $45.9 million
°Parks, Rec & Community Partnerships - $23.9 million
°Fire - $23.3 million
°Non-Departmental - $13.0 million
°Finance & Technology - $12.9 million
°Community Development - $11.4 million
°Human Resources - $9.2 million
°City Manager - $5.2 million
°City Attorney - $3.0 million
°City Council - $0.3 million
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Ventura’s finances for all those with an interest in the government’s finances. Questions concerning any of the information contained herein should be addressed to Bridgette McInally, Accounting Manager, 501 Poli Street, Ventura, CA 93001 or at bmcinally@cityofventura.ca.gov. The City’s Comprehensive Annual Financial Report and Annual Budgets can be found on the City’s website at Transparency.
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City of San Buenaventura
Statement of Net Position
June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Activities
For the year ended June 30, 2019
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See accompanying Notes to the Basic Financial Statements.
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See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Balance Sheet
Governmental Funds
June 30, 2019
See accompanying Notes to the Basic Financial Statements.
20
City of San Buenaventura
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2019
See accompanying Notes to the Basic Financial Statements.
21
City of San Buenaventura
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balances to the Government-Wide Statement of Activities
For the year ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Net Position
Proprietary Funds
June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the year ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Net Position
Fiduciary Funds
June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
Statement of Changes in Net Position
Fiduciary Funds
For the year ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
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City of San Buenaventura
For the Year Ended June 30, 2019
40
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The basic financial statements of the City of San Buenaventura (Ventura), California (City) have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
City of San Buenaventura
The City, incorporated as a town on March 10, 1866, was recognized as a city in the State of California by election on December 4, 1905, and was certified on January 5, 1906. The initial City Charter was adopted January 7, 1932, and was revised most recently on November 8, 2016. The City operates under an elected Council and appointed City Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), public works (maintenance services, capital improvement and utilities), community services, and general administrative services. In accordance with GAAP, these basic financial statements present the City and its component units (entities for which the City is considered to be financially accountable). Blended component units, although legally separate entities are, in substance, part of the City’s operations and data from these units is combined with data of the City. Each blended component unit has a June 30 year end. The City had no discretely presented component units.
The following entity is reported as a blended component unit.
Ventura Public Facilities Financing Authority
The Authority was established by ordinance, pursuant to the City Charter and Constitution of the State of California, as a public body, corporate and politic, acting to facilitate serving the public purposes of the City. The ordinance was adopted on May 28, 1985, and became effective July 1, 1985. The governing body of the Authority is comprised of the consenting members of the City Council. The Authority is empowered to construct, acquire, maintain and improve public facilities and improvements within the City and to sell, lease, exchange, transfer, encumber or otherwise dispose of any interest in property. The Authority's activities presently consist of providing financial assistance to the City through the issuance of certificates of participation and the leasing of assets to the City. At the end of the lease term, all assets revert to the City. The funds of the Authority have been included in the governmental activities of the financial statements.
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self balancing accounts that is comprised of its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances/net positions, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business type activities for the City accompanied by a combined total column. Fiduciary activities of the City are not included in these statements.
The government-wide financial statements are presented on an economic resources measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, including capital assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Grants and similar financial resources are recognized as revenues when all
41
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
eligibility requirements have been met.
Certain types of transactions are reported as program revenues for the City in three categories:
∙Charges for services
∙Operating grants and contributions
∙Capital grants and contributions
Certain exclusions have been made in regards to interfund activities, payables and receivables. All interfund balances in the Statement of Net Position have been excluded except those representing balances between the governmental activities and the business type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, interfund transfers have been excluded from these statements; however, those transactions between governmental and business type activities have not been removed.
Governmental fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis of accounting. These statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances and change in fund balances as presented in these statements to the net position and change in net position presented in the government wide financial statements. The City has presented only major funds that meet the major fund criterion. The following is a list of these major governmental funds:
General Fund - The City’s general fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for by another fund. The General Fund is used to account for activities primarily supported by taxes, grants, and similar revenue sources.
Governmental fund financial statements present current assets, current liabilities and deferred inflows of resources on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 90 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes, interest, and charges for services. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unavailable revenues arise in the governmental funds when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unavailable/unearned revenue is removed from the Balance Sheet and revenue is recognized.
42
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Proprietary fund financial statements include financial statements for Enterprise Funds and Internal Service Funds. Each financial statement includes a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows.
Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or non-current) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. The following is a list of the City’s proprietary funds:
Wastewater Fund – The wastewater fund is categorized as a major enterprise fund. This fund accounts for all wastewater collection, treatment, and reclamation services provided to residents and businesses in the City of Ventura and a small portion of Ventura County. These activities include, but not limited to administration, operations, maintenance, laboratory, and debt service.
Water Fund – The water fund is categorized as a major enterprise fund. This fund accounts for all water treatment and distribution services provided to residences and businesses in the City and a small portion of unincorporated Ventura County. These activities include but are not limited to administration, maintenance, distribution, customer service, production, purification, and debt service.
Internal Service Funds
These proprietary funds account for governmental activities internal service charges. Internal service balances and activities have been combined with the governmental activities in the government wide financial statements. The following is a list of the internal service funds:
These proprietary funds account for governmental activities internal service charges. Internal service balances and activities have been combined with the governmental activities in the government wide financial statements. The following is a list of the internal service funds:
Information Technology Fund - This fund accounts for capital and operational costs related to the replacement and maintenance of the City’s technological infrastructure. Costs are recovered through a monthly user fee charged to City departments.
Fleet Maintenance Fund - This fund accounts for capital and operational costs related to operations of the central fleet maintenance system which provides vehicles for all City departments. Costs are recovered through a monthly user fee charged to City departments.
Facilities Maintenance Fund - This fund accounts for operational costs related to providing City facilities’ maintenance services to all City departments. A monthly fee, based on square footage, is charged to City departments to recover these costs.
Digital Publishing Fund - This fund accounts for capital and operational costs related to printing and reproduction of materials by all City departments. Costs are recovered through a monthly fee charged to City departments using the service.
Workers’ Compensation Fund - This fund accounts for costs and liabilities related to the Workers’ Compensation Program. Costs are recovered through a monthly fee based on employee-type charges to City departments.
43
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Employee Fringe Benefits Fund - This fund accounts for costs and liabilities related to health, life, dental and disability insurances, retirement costs, taxes, and other miscellaneous benefits paid by the City on behalf of the employees. A bi-weekly charge based on a percentage of gross payroll is charged to City departments to recover these costs.
Risk Management Fund - This fund accounts for costs of providing public liability insurance coverage to operating funds. Costs are recovered from those funds that benefit from the insurance coverage.
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Net Position. Fiduciary Funds are used to account for resources that the City holds as a trustee or agent on behalf of an outside party and that cannot be used to support the City's own programs. The City's fiduciary funds consist of a private purpose trust fund and an agency fund. Private purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund is custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Agency funds are reported using the accrual basis of accounting. The City currently reports two fiduciary funds detailed below:
Private Purpose Trust Fund – Redevelopment Successor Agency – The Redevelopment Agency was dissolved by state law on January 31, 2012. Upon dissolution, all of the assets and liabilities of the Agency were transferred to the City of Ventura Successor Redevelopment Agency. The Successor Agency is responsible for the disposition of real property and repayment of the former Agency’s tax allocation bonds (See Note 19).
Agency Fund - Property Based Improvement District Fund – This fund accounts for the funds held in trust by the City as collected from property assessments to be used for the improvements and maintenance of the Downtown Property Based Improvement District.
The City may fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s practice to consider restricted net position to have been depleted before unrestricted net position is applied; however, it is at the City Council's discretion.
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. Guaranteed investment contracts are stated at cost. All other investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Market value is used as fair value for those securities for which market quotations are readily available. For purposes of reporting cash flows, the City considers each fund’s share in the cash and investments pool to be cash and cash equivalents. See Note 2 for more information on Fair Value Measurement.
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. Cash and investments are also restricted for deposits held for others
44
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
within the enterprise funds. The restricted cash and investments are separated from unrestricted cash and investments and presented as such.
Inventories are valued at cost using first in, first out method of accounting for inventories. Governmental fund inventories are recorded as expenses when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The treatment accorded prepaid items in governmental funds is the consumption method. Certain other payments such as construction retention or escrow funds may also be reflected in this category. Also included are items that may be cash held in short term escrow or retention accounts.
Interfund transactions or activities between governmental, proprietary, and fiduciary funds include transfers, loans, and internal services provided.
Interfund transfers are the flow of assets from one fund to another fund without equivalent flow of assets in return and without a requirement for repayments. Interfund transfers are presented as transfers in/out (Note 4) .
Interfund loans or advances are amounts provided between funds with a requirement for repayment. These transactions are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. Current portions of interfund loans are presented as due to/from other funds and non-current portions of loans are presented as advances to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as interfund balances.
Internal services provided between funds are presented in the fund statements as revenues and expenses/expenditures and receivables and payables. These types of interfund transactions reflect the use of services provided from a fund in which the services provided are the fund's main function.
Capital assets which include land, streets, buildings, improvement to buildings and infrastructure, equipment, park and recreation lands, water and wastewater facilities and conveyance systems, storm water conveyance systems, and buildings combined with site amenities such as parking lots and landscaped areas. Other capital assets may include works of art, museum pieces, historical artifacts and other such items.
Capital assets are defined by the City as assets with an estimated useful life in excess of one year and an initial individual cost of $10,000 or more. Donated capital assets, which may include infrastructure and equipment are recorded at acquisition value when accepted by the City. Donated works of art, museum pieces and other such items are recorded at acquisition value. Infrastructure acquired prior to July 1, 1980 is not reported. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s useful life are recorded as operational costs when incurred.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
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Each major infrastructure system can be divided into subsystems. For example, the street system can be
45
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
subdivided into pavement, curb and gutters, sidewalks, streetlights, traffic control devices, etc. These subsystems are not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
The City accrues the cost of annual vacation leave at fiscal year-end. Employees covered by Ventura Maintenance Employee Association (VMEA) Maintenance (A) Units and Service Employees' International Union (SEIU) General (G) Units receive annual leave in lieu of vacation and sick leave (sick leave remaining in leave banks as of 11/05/2004 are available for use/payouts). The City accrues the cost of annual leave at fiscal year-end. The City accrues, once per fiscal year, the cost of sick leave for all employees eligible for a payout of a portion of the balance of unused sick leave upon separation (resignation or retirement). The amount of payout varies by employee group as follows:
Employees covered by SEIU Supervisory (S), Professional (Q), and General (G) Unit agreements shall, after ten years of continuous City service, be eligible to receive an amount equivalent to 25% of their accrued sick leave upon resignation, or retirement from employment or in the case of death to the employee's beneficiary. The maximum sick leave accrual for all employees hired on or before August 1, 1977 is 1440, all other employees have a maximum of 480 hours.
Employees covered by VMEA Maintenance (A) unit agreements shall, after ten years of continuous City service, be eligible to receive an amount equivalent to 25% of their accrued sick leave upon resignation or retirement from employment or in the case of death, to the employee's beneficiary. The maximum sick leave accrual for all employees hired on or before August 1, 1977 is 1440, all other employees have a maximum of 480 hours.
Employees in the Executive (E), Management (M), and Confidential (C) salary schedules shall, after ten years of continuous City service, be eligible to receive an amount equivalent to 25% of their accrued sick leave upon resignation, or retirement from employment or in the case of death to the employee's beneficiary. Notwithstanding the foregoing, employees in Salary Schedule "E" shall, after twenty years of continuous City service, be eligible to receive an amount equivalent to 50% of their accrued sick leave upon resignation/retirement from employment or in the case of death to the employee's beneficiary. The maximum accrual is 480 hours, with the exception of safety management employees promoted into a salary schedule E position. These safety management employees may accrue up to the maximum allowed under the safety management Memorandum of Understanding in effect at the time of promotion.
Police (P) and Police Management (T) shall, after ten years of continuous City service, be eligible to receive an amount equivalent to 2.5% of their accrued sick leave for each completed year of service and will be received upon resignation, or retirement from employment or in the case of death to the employee's beneficiary. After twenty years of continuous City service, they shall be eligible to receive an amount equivalent to 3% of their accrued sick leave for each completed year of service (not to exceed 75%). This benefit will be received upon resignation, or retirement from employment or in the case of death to the employee's beneficiary. The maximum accrual is 1,440 hours.
Ventura City Firefighters Association (F) and Ventura Fire Management Association (B) shall, after ten years of continuous City service, be eligible to receive an amount equivalent to 25% of their accrued sick leave upon resignation, or retirement from employment or in the case of death to the employee's beneficiary. After twenty years of continuous City service, they shall be eligible to receive an amount equivalent to 50% of their accrued sick leave upon resignation, or retirement from employment or in the case of death to the employee's beneficiary. Maximum accrual for employees working a 40-hour schedule is 1440 and 2016 for employees working a 56-hour schedule.
Vacation and sick leave benefits are accrued and recorded in the Employee Fringe Benefits Internal Service Fund. Compensated absences are generally liquidated in the Internal Service Fund.
46
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
In the government wide financial statements, long term debt and other obligations are reported as liabilities in the applicable governmental and business-type activities. Premiums and discounts on bonds sold are amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium and discount. Issuance costs are reported as expenses at the time of debt issuance.
In the fund financial statements, governmental funds recognize bond premiums and discounts during the period in which bonds are issued and the face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs whether or not withheld from the actual debt proceeds received, are reported as expenditures.
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental and business-type activities. In the fund financial statements, proprietary funds recognize the interest payable when the liability is incurred.
Property taxes are levied based on a fiscal year (July 1 – June 30) each year. The property tax assessments are formally due on November 1st and February 1st, and become delinquent after December 10th and April 10th respectively. Taxes become a lien on the property effective January 1st of the preceding year.
The financial statements utilize a net position presentation. Net Position is categorized as follows:
Net Investment in Capital Assets – This amount consists of capital assets, net of accumulated depreciation and reduced by any outstanding debt attributed to the acquisition, construction, or improvement of those assets.
Restricted Net Position – This amount consists of constraints placed on net position use imposed by external creditors, grantors, contributors, laws or regulations of other governments, enabling legislation, or constitutional provisions.
Unrestricted Net Position – This amount is all Net Position that do not meet the definition of “Net investment in capital assets” or “Restricted Net Position.”
In the fund financial statements, governmental fund balances are classified based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. See Note 10 for further detail on fund balance reporting.
The preparation of the basic financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions when necessary. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. The City’s policy is to minimize estimates when actual data is available. Estimates are only used when actual amounts are not known and are based on past performance and new or updated information.
In addition to assets, the statement of net position and the governmental funds balance sheet may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of
47
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until the time that the resource is used. The City has five items that qualify for reporting in this category. The first item is the deferred amount on refunding reported in the government wide statement of net position and the proprietary funds financial statements. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second item is deferred outflows related to pensions. This amount is equal to employer contributions made after the measurement date of the net pension liability. The third item is a deferred outflow related to pensions for net differences between projected and actual earnings on plan investments. This amount is amortized over five years. The fourth item is deferred outflows related to pension as a result of changes in assumptions. The fifth item is a deferred ourflow resulting from the net differences between projected and actual earnings on plan investments in the pension.
In addition to liabilities, the statement of net position and the governmental funds balance sheet may sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category. The first item is unavailable revenues which arise only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, this item, unavailable revenues, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grants. These amounts are reported as unavailable revenues and recognized as an inflow of resources in the period that the amounts become available. The second item is a deferred inflow related to pensions resulting from the difference between expected and actual experience. The third item is a deferred inflow related to pensions for the changes of assumptions. The second and third items are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the Plans.
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
The Governmental Accounting Standards Board (GASB) has issued the following pronouncement which may impact the City’s financial reporting requirement the current period and in the future.
Current Year Pronouncements
∙GASB Statement Number 83 - Certain Asset Retirement Obligations, effective for the fiscal years beginning after June 15, 2018. This statement addresses accounting and financial reporting for certain Asset Retirement Obligations (ARO). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset and as such should be recognized as a liability. This statement establishes criteria for determining the timing and pattern of recognition of a liability and a corresponding deferred outflow of resources for AROs. This liability would be recognized at the time that the liability is both incurred and reasonably estimable based on both external laws, regulations, contracts or court judgments and the occurrence of an internal event that obligates a government to perform asset retirement activities. The City reviewed this new pronouncement and determined that City currently has no ARO obligations.
∙GASB Statement Number 88 - Certain Disclosures related to Debt. This Statement is effective for reporting period beginning after June 15, 2018. The objective of this Statement is to improve the information that is
48
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
disclosed in notes to government financial statements related to debt. This Statement requires that additional essential information related to debt be disclosed in notes to the financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specific in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. This statement also requires that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. Implementing this pronouncement did not have a significant impact on the City's note disclosures.
∙GASB Statement Number 89 - Interest Cost Incurred before the End of a Construction Period is effective for reporting periods beginning after December 15, 2019. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the costs of borrowing for a reporting period and (2) to simplify accounting for interest costs incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for the financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business- type activity or enterprise fund. Implementation of this new prouncement did not impact the City's financial reporting.
Future Year Pronouncements
∙GASB Statement Number 84 – Fiduciary Activities, effective for reporting periods beginning after December 15, 2018. The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes. The focus of the criteria established in this statement is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Greater consistency and comparability enhances the value provided by the information reported in the financial statements for assessing the governments accountability and stewardship.
∙GASB Statement Number 87 – Leases, effective for reporting periods beginning after December 15, 2019. The objective of this statement is to improve accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets liabilities for leases that previously were classified as operating leases and recognized as inflows or outflows of resources based on the payment provisions of the contract. This statement will increase the relevance and consistency of information about governments’ leasing activities.
∙GASB Statement Number 90 - Majority Equity Interests. This statement is effective for reporting periods beginning after December 15, 2018. This amendment of GASB Statements No. 14 and 61 is intended to improve the consistency and comparability of reporting majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units.
∙GASB Statement Number 91 - Conduit Debt Obligations. The primary objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures. This statement clarifies the existing definition of a conduit debt obligation, establishing that a conduit debt obligation is not a liability of the issuer, establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. This statement is effective for reporting periods beginning after December 15, 2020.
49
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Cash and investments as of June 30, 2019, are classified in the accompanying financial statements as follows:
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Cash and investments as of June 30, 2019, consist of the following:
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The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, and concentration of credit risk. This table does not address investment of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
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* Excluding Amounts held by bond trustee that are not subject to California Government Code restrictions.
**Maximum investment is per component unit.
**Maximum investment is per component unit.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee and identifies certain provisions of these
50
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
debt agreements that address interest rate risk and concentration of credit risk.
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GASB Statement No. 72 "Fair Value Measurement" generally requires investments to be measured at fair value. An investment is defined as a security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a present service capacity based solely on its ability to generate cash or to be sold to generate cash. Fair value is defined or described as an exit or sale price. Statement No. 72 provides guidance for determining and applying a fair value measurement for financial reporting purposes. This Statement requires the City to use certain valuation techniques and requires consistency when applying these techniques. This Statement establishes a hierarchy of relative inputs used to measure the fair value of the investments. These techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City's management. City management considers observable data to be market data, which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. This hierarchy has three levels with the highest priority being assigned to unadjusted quoted prices in active markets for identical assets while the lowest priority is assigned to unobserved inputs. All of hte City's investments subject to fair value are Level 2 as valued by quoted prices for similar assets in active markets.
The three levels of the fair value hierarchy mentioned above are as follows:
Level 1 - Inputs to the valuation methodology include:
a.Unadjusted quoted prices for identical assets in active markets that the City has the ability to access.
Level 2 - Inputs to the valuation methodology include:
b.Quoted prices for similar assets in active markets;
c.Quoted prices for identical or similar assets in inactive markets;
d.Inputs other than quoted prices that are observable for the asset;
e.Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology include:
f.Unobservable and significant to the fair value measurement. Unobservable inputs reflect the City's own assumptions about the inputs market participants would use in pricing the asset (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City's own data.
51
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
(1) All of the City's investments subject to fair value are in level 2 as valuded by quoted prices for similar assets in active markets.
Interest rate risk is generally defined as the potential risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by adding diversification by purchasing a combination of shorter term and longer term investments. In addition, by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
52
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Credit risk is generally defined as the potential risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following presentation is the minimum rating required (where applicable) by the California Government Code, the City’s investment policy, debt agreements, and the actual rating as of year-end for each investment type:
The ratings were with Moody's and Standard and Poor's as of June 30, 2019.
The City’s investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments, other than U.S. Treasury Obligations, in any one issuer that represent 5% or more of total City’s investments are as follows:
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Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counter party (e.g., broker/dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2019, the City's deposits with financial institutions were covered by Federal Deposit Insurance Corporation insurance limits or were collateralized as required by California law.
53
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair market value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
54
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
At June 30, 2019, loans and notes receivable consisted of the following:
Remaining loans funded under the City’s Homebuyer Assistance Program (HBAP) while the City was part of the County of Ventura’s HOME Consortium. This program is no longer active. The general purpose of the HBAP was to promote neighborhood stabilization, stimulate private reinvestment, and broaden affordable housing opportunities. The remaining HBAP loans are administered by the Housing Authority of San Buenaventura. HBAP provided deferred loans to low-income residents, for down-payment assistance. The maximum term of a loan is 45 years with interest being charged in the form of equity sharing equal to 50% of the value of the original loan. All interest shall be forgiven provided that the participating owner occupies the property continuously for 45 years. Any repayment received on these remaining loans does not need to be forwarded to the County of Ventura as other HOME match may require. The outstanding balance as of June 30, 2019 is $11,356 and is recorded in the Housing and Community Development Block Grant Capital Projects Fund.
55
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The project includes 38 one and two-bedroom units for senior low- and very low-income households. The project has commercial space dedicated to the Housing Authority of the City of San Buenaventura for Section 8 office use. The loan was funded by City General Funds $607,500 and Community Development Block Grant funds $50,000. The maximum term of the loan is 45 years with interest at 3% per annum. The loan is recorded in both the General Fund with an outstanding balance as of June 30, 2019 of $769,070 and in the Housing and Community Development Block Grant Fund with an outstanding balance as of June 30, 2019 of $60,497.
Community Development Block Grant (CDBG) funded loan $104,000, at 0% interest, for site acquisition for the development of a 10-unit Transitional housing facility in the Westside to serve up to 15 disabled veterans per year. As long as there is no default under the terms of the Loan documents, the entire principal amount shall be forgiven in full on the fifth anniversary of the date of the Note, which is on the fifth year from the date of issuance of the certificate of occupancy. The certificate of occupancy was issued August 18, 2015. The loan is recorded in the Housing and Community Development Block Grant Fund. As of June 30, 2019 the terms of the loan have been met and the loan has been forgiven.
HOME funds were disbursed to Turning Point Foundation for a renovation loan of $283,149 for the Vince Street Transitional Housing facility. This loan has 0% interest and as long as there is no default under the terms of the loan documents, the entire principal amount shall be forgiven in full on the 15th anniversary of the date of the loan. The loan is recorded in the Housing and Community Development Block Grant Fund.
In June 2017, the City approved a Community Development Block Grant loan of $20,154 to Turning Point Foundation for the renovation of their Our Place Shelter building that assists the homeless and mentally ill by providing temporary housing, needs assessment, and case management services. In FY2018/19, the City approved an additional loan of $208,609, bringing the total outstanding loan balance as of June 30, 2019 to $228,763. This loan does not bear any interest and as long as there is no default under the Loan Agreement terms, there shall be no payment due and all amounts due and owing shall be forgiven in full by the City five years after completion of the project as defined in the Loan Agreement. This loan is reported in the Housing and Community Development Block Grant Fund.
There are four components contained within this program: Micro Loan, Code Compliance Assistance, Commercial Rehabilitation Assistance and Economic Development Loan. There are various maximum amounts, interest rates and terms for the four components. All loan programs with new construction or rehabilitation work must adhere to adopted Design Guidelines and Design Review Requirement where applicable.
The basic information for each component of the Business Assistance Program is outlined below:
Micro Loan Program - The primary goal of this program is to create jobs and support the growth and success of small businesses in Ventura. This is a flexible loan program designed for existing and new small businessess. The maximum amount allowable for each loan is $50,000. The interest rate will be fixed at the cost of City funds plus two points. The maximum term for each loan is not to exceed 10 years. Outstanding loan balance at June 30, 2019 amounted to $453,614. These loans are reported under the Housing and Community Development Block Grant Capital Project Fund.
Code Compliance Assistance Program - The Code Compliance Assistance Program is to support businesses with building code compliance requirements on existing commercial properties. The program is designed to encourage code compliance and public safety in conjunction with Inspection Services. The maximum loan amount is $25,000. The interest rate is fixed at the cost of City funds plus two points. The maximum term of the original loan is not to exceed 10 years. Outstanding loan balance at June 30, 2019 amounted to $109,540 reported in the General Fund.
56
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Commercial Rehabilitation Loan Program - The Commercial Rehabilitation Assistance Program is designed to encourage revitalization and renovation of older commercial districts while promoting physical enhancement of commercial property. The program goal is to foster business growth or retention through improving the physical appearance of qualified buildings. Qualified property owner and businesses may be eligible to receive below market rate loans for facade, construction, or building renovation. The maximum loan amount is $50,000. The interest rate is fixed at the cost of City funds plus two points. The maximum term of the original loan is not to exceed 10 years. Outstanding loan balance at June 30, 2019 amounted to $281,915 reported in the General Fund.
Economic Development Loan Program – The Economic Development Loan program is designed to encourage and facilitate business growth in Ventura. The growth will increase sales tax revenues for the City and will fund City operations and benefit the Ventura community. Outstanding loan balance at June 30, 2019 amounted to $924,899 for four loans reported in the General Fund.
The City Council established a mortgage assistance program as an important tool to enable key officials and other employees to live in the City. It was intended to aid the City to recruit highly qualified employees and assist them through mortgage assistance in the purchase of a new home in the City. The City is not providing new mortgage assistance loans at this time. Loans are reported in the Employee Benefits Fund.
The loans are secured by a deed of trust on the properties. All loans have been repaid. The following table summarizes the loan activity:
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The former Redevelopment Agency used its Low Mod Set Aside funds for affordable housing loans and assistance for various programs. In 2011, after the demise of redevelopment agencies, the City accepted the role of Successor Housing Agency and all affordable housing related assets including loans were transferred from the Low Mod Fund to the Successor Housing Agency fund. The programs are listed below:
Former Redevelopment Agency Low- to Moderate Income Housing Funds were used as HOME Match for down payment assistance loans for qualified persons from low to moderate-income households. The maximum term is 45 years with interest being charged in the forms of equity sharing equal to 50 percent of the value of the original loan. All interest shall be forgiven provided that the participating owner occupies the property continuously for 45 years. The outstanding loan balance due as of June 30, 2019 was $22,600.
57
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Proceeds from a CalHFA HELP loan were the source of a loan of $1.5 millions to the Working Artists Ventura (WAV) Apartment Partners. The loan has 3% simple interest for a term of 30 years (annual payments of $77,598 commencing May 1, 2010). Outstanding loan balance as of June 30, 2019 is $1,275,735.
During fiscal year 2008, the City entered into an Impact Fee Deferral Loan Agreement for $1,581,858 in planning and permitting fees for the Working Artists Ventura (WAV Project.) A separate promissory note and deed of trust were executed with WAV Apartment Partners for the affordable apartment units restricted to low and very low income households in the amount of $1,311,165 and with WAV Condominiums LLC for the market-rate condominium units in the amount of $270,693. The condominium component has been paid in full. The apartment component deferred fees are payable through April 1, 2064 in annual principal and interest installments of $48,971, and has an outstanding loan balance as of June 30, 2019 of $1,157,012 and is reported under various funds.
Soho Associates LP - The City entered into a loan agreement on May 1, 2012 to loan $450,000 of HOME funds disbursed over three fiscal years (2009-10 $350,000; 2010-11 $50,000; and, 2011-12 $50,000) for the acquisition and development of an affordable housing project. The loan is secured by a deed of trust and bears simple interest at 3% commencing on the date of the initial disbursement. The term expires 55 years from the date of recordation of the affordability covenant against the property. Payments are due on May 1st of each year with payment of the outstanding principal and accrued interest equal to the City’s pro-rata share of residual receipts with any remaining balance due at the end of the term. The outstanding balance as of June 30, 2019 is $584,795 and is reported in the Housing and Community Development Block Grant Capital Project Fund.
The former Redevelopment Agency entered into a loan agreement on May 1, 2010 to loan $550,000 of its Low- and Moderate-Income Housing Set Aside Funds to this limited partnership to assist with the acquisition and development of this affordable housing project located outside the Downtown’s Redevelopment Project Area. The loan was disbursed over three fiscal years (2009-10 $406,000; 2010-11 $72,000; and, 2011-12 $72,000). The loan is secured by a deed of trust bearing simple interest at 3% commencing on the date of the initial disbursement. The term expires 55 years after the date of recordation of the affordability covenant against the property. Payments are due on May 1st of each year with payment of the outstanding principal and accrued interest equal to the City’s pro-rata share of residual receipts with any remaining balance due at the end of the term. Outstanding balance as of June 30, 2019 is $714,177 and is reported in the Successor Housing Agency Special Revenue Fund. However, since the former RDA loan was used as "matching funds" for the HOME program, any payments received are to be considered Program Income in the Housing and Community Development Block Grant Fund.
El Patio LP - The City entered into a loan agreement on December 17, 2009 to loan $408,000 in HOME CHDO funds to this limited partnership to assist with the rehabilitation of an existing property. The loan is secured by a deed of trust and bears simple interest at 3% commencing on the date of the initial disbursement. The term expires 55 years from the date of recordation of the affordability covenant against the property. Payments are due on September 30th of each year with payment of the outstanding principal and accrued interest equal to the City’s pro-rata share of residual receipts with any remaining balance due at the end of the term. The outstanding balance as of June 30, 2019 is $469,292 and is reported in the Housing and Community Development Block Grant Fund.
The former Redevelopment Agency entered into a loan agreement on December 17, 2009 to loan $392,000 of its Low- and Moderate-Income Housing Set Aside Funds to this limited partnership to assist with the rehabilitation of existing property for an affordable housing project located within the Downtown’s Redevelopment Project Area. The loan was disbursed over four fiscal years (2009-10 $306,400; 2010-11 $28,550; 2011-12 $28,550; and 2012-13 $28,500). The loan is secured by a deed of trust bearing simple interest at 3% commencing on the date of the initial disbursement. The term expires 55 years after the date of recordation of the affordability covenant against the property. Payments are due on September 30th of each year with payment of the outstanding principal and accrued interest equal to the City’s pro-rata share of residual receipts with any remaining balance due at the end of the term.
58
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The outstanding balance as of June 30, 2019 is $439,897 and is reported in the Successor Housing Agency Special Revenue Fund. However, since the former RDA loan was used as "matching funds" for the HOME program, any payments received are to be considered Program Income in the Housing and Community Development Block Grant Fund.
Azahar Place Associates LP (CEDC) - The City entered into a loan agreement on February 16, 2010 to loan $1,300,000 in HOME funds to this limited partnership to assist with the acquisition and development of an affordable housing project. Financial assistance is in the form of two loans: 1) $900,000 for acquisition and 2) $400,000 development/construction. The loans are each secured by a deed of trust and each bears simple interest at 3% commencing on the date of the initial disbursement. The loans were disbursed over three fiscal years (2009-10 $900,000; 2010-11 $200,000; and, 2011-12 $200,000). The term expires 55 years after completion of construction. Payments are due on September 30th of each year with payment of the outstanding principal and accrued interest equal to the City’s pro-rata share of residual receipts with any remaining balance due at the end of the term. The outstanding balance as of June 30, 2019 is $1,691,024 and is reported in the Housing and Community Development Block Grant Fund.
The former Redevelopment Agency entered into an Owner Participation Agreement on February 16, 2010 to loan $1,700,000 of its Low- and Moderate-Income Housing Set Aside Funds to this limited partnership to assist with the acquisition and development of an affordable housing project located outside the Downtown’s Redevelopment Project Area. The financial assistance is in the form of two loans: 1) $1,100,000 for acquisition and 2) $600,000. The loans were disbursed over three fiscal years (2009-10 $1,100,000; 2010-11 $300,000; and, 2011-12 $300,000). The loans are each secured by a deed of trust and each bears simple interest at 3% commencing on the date of the initial disbursement. The term expires 55 years after the date of recordation of the affordability covenant against the property. Payments are due on September 30th of each year with payment of the outstanding principal and accrued interest equal to the City’s pro-rata share of residual receipts with any remaining balance due at the end of the term. The outstanding balance as of June 30, 2019 is $2,149,154 and is reported in the Successor Housing Agency Special Revenue Fund. However, since the former RDA loan was used as "matching funds" for the HOME program, any payments received are to be considered Program Income in the Housing and Community Development Block Grant Fund.
Snapdragon Apartments Affordable Housing
HOME funds were disbursed to Cabrillo Economic Development Corporation for the acquisition of property to construct a 22-unit rental multi-family development on the East End of Ventura in the amount of $450,000. This loan has 0% interest and as long as there is no default under the terms of the loan documents, the entire principal amount shall be forgiven in full on the 20th anniversary of the completion of the project. The loan is recorded in the Housing and Community Development Block Grant Fund.
Housing Authority of the City of San Buenaventura – Distressed Properties
The City loaned the Housing Authority $465,000 of HOME funds under separate loan agreements for the purchase and rehabilitation of three properties for the City’s affordable housing stock.
These loans do not bear any interest and as long as there is no default under the Loan Agreement terms, there shall be no payment due and all amounts due and owing shall be forgiven in full by the City upon the expiration of the 15-year term. These loans are reported in the Housing and Community Development Block Grant Fund.
59
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Housing Authority of the City of San Buenaventura – Johnson Gardens (Ventura Housing Authority)
The City loaned the Housing Authority $300,000 of HOME funds in February 2016 for permanent financing of their Johnson Gardens Project consisting of affordable rental units for seniors and persons with disabilities.
This loan does not bear any interest and as long as there is no default under the Loan Agreement terms, there shall be no payment due and all amounts due and owing shall be forgiven in full by the City upon the expiration of the 17-year term. This loan is reported in the Housing and Community Development Block Grant Fund.
Homebuyer Assistance Program (City)
These down-payment assistance loans are funded with a variety of funding sources. The maximum term of the loan is 45 years with interest being charged in the form of equity sharing equal to 50% of the value of the original loan. Provided that the participating owner occupies the property continuously for 45 years, all interest shall be forgiven. These loans are reported in the Housing and Community Development Block Grant Fund. Outstanding loan balance as of June 30, 2019 is $1,051,230.
Housing Preservation Program
The Housing Preservation Program (HPP) funds low interest loans to qualifying low and moderate-income households to rehabilitate single-family owner-occupied properties. The loan term ranges from 15 to 45 years depending on initial funding date. These loans are reported in the General Fund and in the Housing and Community Development Block Grant Fund. Outstanding loan balance as of June 30, 2019 is $861,217.
CEDC Los Angeles Apartments
The City entered into a loan agreement in December 2013 for $300,000 of Community Development Block Grant funds to Cabrillo Economic Development Corporation (CEDC) for the purchase of property and construction of a housing project consisting of forty-nine (49) affordable rental units and one (1) manager’s unit. The term of the loan is five years and bears no interest unless there is a default. So long as the borrower fulfills the terms of the loan agreement and continues to operate the affordable housing development, all amounts due and owing shall be forgiven in full by the City at the end of the agreement term. As of June 30, 2019 the terms of the loan have been met and the loan has been forgiven.
The Villages at Westview
In June 2019, the City entered into a $300,000 loan agreement with the Housing Authority of San Buenaventura, for Phase I of the Westview Village project. The entire project is to reconstruct a 180-unit housing community into 320 new units. Phase I will demolish 72 existing units, to be replaced with 131 new units. The duration of the loan is 55 years. The loan does not bear interest nor does it require principal payments, providing there is no default in the terms of the Agreement. If all the terms of the agreement are met, on the 55th anniversary the loan shall be forgiven.
Due to the nature of some Loans and Notes Receivable as long-term and/or forgivable, an allowance for uncollectible accounts has been established to offset the balances.
60
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Advances to/from other Funds
As of June 30, 2019, balances Advanced to/from other Funds are as follows:
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Other Governmental Funds
The advance from the General Fund to the Downtown Parking District ($1,020,409) was to pay for a lawsuit settlement with Multi-Cinema, LLC.
Due to /from other Funds
As of June 30, 2019, balances of due to/from other funds are as follows:
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Amount due to Other Governmental Funds represents monies due to the Successor Housing Agency from the Housing and Community Block Grant Fund in accordance with AB 1484 Community Redevelopment law.
The General Fund made short-term loans to the General & Categorical Grants and Successor Housing Agency Funds to eliminate negative cash balances.
Transfers for the year ended June 30, 2019 were as follows:
61
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
62
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The transfers were for the following purposes:
63
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Governmental Activities
The following is a summary of changes in capital assets for governmental activities:
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Depreciation expense in governmental activities for capital assets for the year ended June 30, 2019, is composed of the following:
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63
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Business-type Activities
The following is a summary of changes in capital assets for business-type activities:
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Depreciation expense in business-type activities for capital assets for the year ended June 30, 2019, is composed of the following:
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64
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
In 1963, the Ventura County Flood Control District (VCFCD) contracted with the California Department of Water Resources (DWR) for delivery of up to 20,000 acre-feet of State Water Project water (State Water). In 1970, VCFCD assigned the entitlement to Casitas Municipal Water District which in turn assigned 5,000 acre-feet to the United Water Conservation District (UWCD) and 10,000 acre-feet to the City. Since the assignment, the City has made contractually obligated payments to DWR on an annual basis to maintain the right to utilize its allocation. The current agreement runs through June 30, 2035, and it is anticipated that it will be renewed and the contract will be extended.
The costs for State Water include DWR fixed charges regardless of the amount of water delivered and DWR variable charges associated with the delivery of water. The City does not have the infrastructure to receive and deliver State Water to its existing water system at this time and therefore most of the costs attributed to State Water costs are associated with operation and maintenance (DWR fixed costs) and the City elected to expense these costs. The total cost for the year ended June 30, 2019 was $1,591,390.
Future estimated expenses are as follows:
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The Summary of Changes in Long-Term Liabilities and other noncurrent liabilities for Governmental Activities for the year ended June 30, 2019, is as follows:
65
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
On December 1, 2007, the City issued $11,420,000 in Certificates of Participation, Series E with an average interest rate ranging from 3% to 4.5% to provide for the advance refunding of the $7,090,000 City of Ventura Public Facilities Financing Authority 1995 Refunding Lease Revenue Bonds, finance the acquisition of unencumbered fee title to a public parking structure, finance certain public park improvements, fund the Reserve Fund, and pay certain costs incurred in connection with the execution and delivery of the Certificates. Reserve requirements for this issuance is $596,700. The Certificates are secured by a Surety bond with the Police & Fire Department Headquarters serving as collateral. The Certificates were executed and delivered by and among the Bank of New York Trust Company, N.A. as Trustee. Principal is paid once a year on June 1, and interest paid semi-annually on December 1 and June 1 of each year. The annual debt service requirements for the Certificates of Participation, Series E outstanding at June 30, 2019 were as follows:
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On July 28, 2010, the City issued $20,615,000 in Certificates of Participation, Series F with interest rates ranging from 2% to 4.75% to provide for the advance refunding and defeasance of a portion of the $2,925,000 2001 Refunding Certificates of Participation, Series A; a portion of the $19,765,000 2002 Refunding Certificates of Participation, Series B; a portion of the $16,345,000 Certificates of Participation, Series C; and a portion of the $15,930,000 2002 Certificates of Participation, Series D; finance certain public golf course improvements; acquire a reserve fund surety policy; and pay certain costs incurred in connection with the execution and delivery of the Certificates. These Certificates have a reserve requirement of $1,442,751. These Certificates are secured by the Corporate Yard and Arroyo Verde Park properties. Principal is paid once a year on July 1 and interest paid semi-annually on July 1 and January 1 of each year.
The annual debt service requirements for the Certificates of Participation, 2010 Series F outstanding at June 30, 2019 were as follows:
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66
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
On May 15, 2012, the City issued $16,450,000 in Refunding Lease Revenue Bonds, Series 2012 A with interest rates ranging from 2.375% to 5.0% to provide for the advance refunding and defeasance of the remaining 2001 Certificates of Participation, Series C; provide for the advance refunding and defeasance of the remaining 2002 Certificates of Participation, Series D; and pay certain costs incurred in connection with the execution and delivery of the Bonds. Principal is paid on February 1 and interest paid semi-annually on August 1 and February 1 of each year.
The annual debt service requirements for the Refunding Lease Revenue Bonds, 2012 Series A outstanding at
June 30, 2019 were as follows:
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On May 15, 2012, the City issued $1,365,000 in Taxable Refunding Lease Revenue Bonds, 2012 Series B with an interest rate of 2.75% to provide for the refunding of a portion of the July 1, 2012 Certificates of Participation, 2010 Series F; and pay certain costs incurred in connection with the execution and delivery of the Certificates. The Certificates were executed and delivered by and among the Bank of New York Trust Company, N.A. as Trustee. Principal is paid once a year on February 1 and interest paid semi-annually on August 1 and February 1.
The annual debt service requirements for the Refunding Lease Revenue Bond, 2012 Series B outstanding at
June 30, 2019 were as follows:
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Reserve requirements for the 2012 Series A and Series B bonds is $1,645,000 and $136,000 respectively and are both secured by the Ventura Park and Olivas and Buenaventura Golf Courses.
67
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
On August 5, 2005, a low-interest loan was received from the California Energy Commission to install solar panels at the City’s Sanjon Yard facility to reduce energy use. The loan has an interest rate of 3.95% and a 15-year repayment schedule with 30 equal semi-annual payments of $9,214.
The annual debt service requirements for this loan at June 30, 2019, are as follows:
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68
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The City issued Wastewater Revenue Refunding Bonds in 2012, Series A and Series B in the amount of $2,560,000 and $15,915,000, respectively. The taxable bonds were issued to provide funds to advance refund all of the outstanding City of San Buenaventura 2004 Wastewater Revenue Certificates of Participation, and to pay costs incurred in connection with the issuance of the bonds. The Series A bonds have been paid in full. The Series B bonds are due in annual principal installments of $710,000 to $1,235,000 through 2034. Interest rates range from 0.97% to 5% and is payable semi-annually on January 1 and July 1. The total amount outstanding as of June 30, 2019, was $14,105,000.
The Wastewater Revenue Refunding Bonds are secured by an irrevocable pledge of wastewater net revenue, which totaled $6,659,389 for the current year. The principal and interest remaining on the bonds is $20,722,250 payable through fiscal year 2034.
Total Wastewater Revenue Refunding Bonds outstanding as of June 30, 2019, net of Unamortized bond premium were as follows:
The annual debt service requirements for the Wastewater Revenue Refunding Bonds, 2012 Series B outstanding at June 30, 2019, were as follows:
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69
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The City issued Wastewater Revenue Bonds 2014, Series C in the amount of $22,730,000. The Series C bonds were issued to provide funds to acquire and construct certain improvements for the City’s wastewater system, and to pay costs incurred in connection with the issuance of the bonds. The Bonds are due in annual principal installments of $150,000 to $2,385,000 through 2044. Term bonds of $8.5 million and $10.84 million are due in 2039 and 2044, respectively. Interest rates range from 2% to 5% and is payable semi-annually on January 1 and July 1. The total amount outstanding as of June 30, 2019 , was $22,170,000.
The Wastewater Revenue Bonds are secured by an irrevocable pledge of wastewater net revenue, which totaled $6,659,389 for the current year. The principal and interest remaining on the bond is $43,194,288, payable through fiscal year 2044.
Total Wastewater Revenue Bonds outstanding as of June 30, 2019, net of Unamortized bond premium were as follows:
The annual debt service requirements for the Wastewater Revenue Bonds, 2014 Series C outstanding at June 30, 2019, were as follows:
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The City issued Water Revenue Bonds 2012 Series A and Series B in the amount of $11,095,000 and $34,355,000, respectively. The taxable bonds were issued to provide funds to advance refund all of the outstanding City of San Buenaventura 2004 Water Revenue Certificates of Participation, to acquire and construct certain improvements for the City’s Water System, and to pay costs incurred in connection with the issuance of the bonds. The Bonds are due in annual principal installments of $930,000 to $2,825,000 through 2042. Interest rates range from 0.4% to 5% and is payable semi-annually on January 1 and July 1. The total amount outstanding as of June 30, 2019, was $40,185,000.
Total Water Revenue Refunding Bonds outstanding as of June 30, 2019, net of Unamortized bond premium and deferral on refunding were as follows:
70
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The annual debt service requirements for the Water Revenue Bonds, 2012 Series A outstanding at June 30, 2019, were as follows:
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The annual debt service requirements for the Water Revenue Refunding Bonds, 2012 Series B outstanding at June 30, 2019, were as follows:
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The City issued Water Revenue Bonds 2014, Series C in the amount of $16,645,000. The Series C Bonds were issued to provide funds to acquire and construct certain improvements for the City’s water system, and to pay costs incurred in connection with the issuance of the bonds. The Bonds are due in annual principal installments of $45,000 to $4,140,000 through 2044. Interest rates range from 3.25% to 5% and is payable semi-annually on January 1 and July 1. The total amount outstanding as of June 30, 2019, was $16,645,000 .
71
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Total Water Revenue Bonds outstanding as of June 30, 2019, net of Unamortized bond premium were as follows:
The annual debt service requirements for the Water Bonds, 2014 Series C outstanding at June 30, 2019, were as follows:
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The City has entered into a funding agreement with the State of California Department of Water Resources for a construction loan under the Safe Drinking Water State Revolving Fund Law of 1997. The loan has an interest rate of 2.39% and a 20-year repayment schedule with 40 equal payments of $631,910.
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72
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The 2012 Water Revenue Refunding Bonds, the 2014 Water Revenue Bonds and the Safe Drinking Water Loan are secured by an irrevocable pledge of water net revenue, which totaled $7,722,971 for the current year. Debt service for the current year on these debts totaled $2,708,484, $774,594 and $1,263,820 for the 2012 Water Revenue Refunding Bonds, the 2014 Water Revenue Bonds and the Safe Drinking Water Loan, respectively.
In 2011, the City of San Buenaventura ("City") issued $350,000,000 in Revenue Bonds ("2011 Conduit Bonds") on behalf of the Community Memorial Health System ("CMHS"). The proceeds of the 2011 conduit bonds were used to: a) finance and refinance the acquisition, construction, equipping and improvement of certain health care facilities, including a new hospital tower for Community Memorial Hospital (the "Project") located in Ventura, California; b) pay a portion of the capitalized interest on the 2011 conduit bonds during the period of construction of the Project; and c) fund a debt service reserve account. The obligation of CMHS to make payments will be secured by a Construction and Permanent Deed of Trust ("Deed of Trust") granting an interest in certain properties and related health care facilities and equipment owned by CMHS. The City has no obligation to make the debt service payments in the event that the CMHS is not able to make the required revenue payments. Accordingly, this debt is excluded from the Statement of Net Position. As of June 30, 2019, the outstanding amount was $333,980,000
73
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Unearned revenues at June 30, 2019, consist of
74
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The City had three prior period adjustments recorded for the year ended June 30, 2019.
Governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2019, fund balance for governmental funds consisted of the following:
Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts, and long-term notes and advances receivable.
Restricted Fund Balance – includes amounts that are restricted for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted
75
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
only with the consent of resource providers.
Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of City Council, which is the highest level of this government's decision-making authority. Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint. The City Council has established a Stabilization Reserve that is intended to equal approximately 90 days of the City's General Fund operating and maintenance budget. At fiscal year ended June 30, 2019, the stabilization reserve balance is $15.1 million. As funding permits Council will continue adding to the reserve. The Stabilization Reserve may only be used for the following purposes: a) Cash Flow - To temporarily provide a liquidity cushion against variability and timing of expenditures and receipts and must be replenished in full prior to year-end; b) Emergencies - To provide funding in the event of emergencies, such as natural disasters (which may include, but are not limited to wild fires, earthquakes, floods, or tsunamis); c) other non-predictive emergencies; d) or the full replacement or partial replacement of City infrastructure should there be an unexpected failure. In the event this reserve is drawn down, the development and implementation of a replenishment plan will be put in place no later than the next fiscal year budget. The plan will include the fixed schedule of reserve replenishment.
Assigned Fund Balance – includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. City Council annually authorizes the City's Financial Policies which authorize the Finance and Technology Director to assign fund balance amounts to a specific purpose.
Unassigned Fund Balance – the residual classification for the General Fund and includes all amounts not contained in the other classifications. Governmental funds report residual negative balances as unassigned fund balance.
In circumstances where an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.
76
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Fund balances at June 30, 2019, for the governmental funds are nonspendable, restricted, committed, assigned, or unassigned for the following purposes:
Below are plans to reduce or eliminate deficit Fund Balances and Net Position:
The deficit fund balance of $326,632 is a decrease from the previous year by $469,727. In 2016 the City settled a lawsuit with Multi-Cinema, LLC. The Downtown Parking District borrowed the funds for the settlement from the General Fund. The current outstanding loan amount is $1,020,409 and is paid monthly.
The deficit net position of $8,874,272 is an increase of $274,260 from the previous year. The City's long-term compensated absences balance of $5,897,491 is the main reason for this deficit. This long-term liability is not funded due to: 1) the expectation that much of the compensated absences will be used by employees throughout their employment with the City, and 2) the City does not anticipate a significant separation payout to employees in
77
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
any given year. Internal service charges will continue to be reviewed annually.
The deficit net position of $10,923,293 is a $2,088,434 increase from the previous year. The City has long-term claims totaling $12.1 million, which will continue to change over time as a result of claims filed. Internal service charges will continue to be reviewed annually.
The deficit net position of $8,101,534 is due to a decrease in $1.0 million in claims and the associated expenditures with the 2017 Thomas Fire. Internal Service charges will continue to be reviewed annually.
78
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City is self-insured for the first $1,000,000 in loss for each workers’ compensation claim and the first $1,000,000 for each general liability claim and up to $250,000 for property damage claims. The City accounts for and finances its self-insured risks of loss in the Workers’ Compensation Fund and Public Liability Fund. Excess insurance is purchased through a Joint Powers Authority and from commercial carriers for each workers’ compensation and general liability claim losses in excess of the self-insured retention levels.
The outstanding claim liabilities in each of the self-insurance internal service funds are based on independent claims evaluation and also the results of separate actuarial studies and include amounts for claims incurred but not reported. Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency, severity, and other economic and social factors. The estimate of the claims liability also includes amounts for allocated claim adjustment expenses related to specific claims and other unallocated claim adjustment expenses. General liability and workers’ compensation liabilities are carried at an actuarially determined rate. It is the City’s practice to obtain full actuarial studies annually for general liability and workers’ compensation coverage. Premiums are charged by the internal service self-insurance funds using various allocation methods that include actual costs, trends in claims experience, claim severity and claims frequency. Revenues of the internal service self-insurance funds are expended to provide adequate resources to allay program administrative costs, preventative measures and to meet liabilities as they become due.
During the past three fiscal years, none of the above programs of protection have had settlements or judgments that exceeded the insurance and pool policy limits. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.
The aggregate change in the balance of claims liabilities for the internal service self-insurance funds were as follows:
At June 30, 2019, total estimated claims payable were as follows:
79
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Plan Description - All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and the City's resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50+ with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
The Plans' provisions and benefits in effect atJune 30, 2018, the measurement date, are summarized as follows:
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80
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Employees Covered - At the measurement date of June 30, 2018, the following employees were covered by the benefit terms for each Plan:
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*Member counts (employees covered) included in the valuation above are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. City members may also be included in valuation groups of other municipalities (past employers) that are a part of the California Public Employee's Retirement System. This does not result in double counting of the City's pension liabilities.
Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate the contribution rate of employees.
The changes in the Net Pension Liability for the measurement date of June 30, 2018 for each Plan follows:
81
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
82
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the net position liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
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Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.
For the year ended June 30, 2019, the City recognized net pension expense of $30,153,452 ($12,530,931 Miscellaneous Plan and $17,622,521 Safety Plan) which is based on the Measurement Period Ended June 30, 2018. The City of San Buenaventura has deferred outflows and deferred inflows of resources related to the pension plans listed below as of the measurement date, June 30, 2018:
83
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Combined Totals
$18,525,468 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the measurement period ending June 30, 2019. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:
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At June 30, 2019, the City had no outstanding contributions to the pension plan required for the year ended June 30, 2019.
84
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2018, using an annual actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions - The total pension liabilities in the June 30, 2017 actuarial valuations were determined using the following actuarial assumptions:
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The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of MP 2016. For mor detais on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found ont he CalPERS website.
Long-term Expectated Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
85
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
The expected real rates of return by asset class are as follows:
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(1) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(2) An expected inflation of 2.0% used for this period.
(3) An expected inflation of 2.92% used for this period.
Discount Rate - The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
86
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Contingencies
The City of Ventura filed suit against United Water Conservation District (UWCD) to recover amounts that City believed it had been overcharged by UWCD in prior years. The City prevailed with the trial court and was awarded $1.75 million. UWCD appealed the decision to the appellate court but paid this money to the City to avoid accruing further penalties and interest. The case was remanded by the California Supreme Court to the Court of Appeal, and final determination of liability has not been decided. The City believes that it will prevail and, therefore, recognized the payment from UWCD as revenue in the Water Fund in fiscal year ended 06/30/2016. If the City is required to refund the money to UWCD, the Water Fund will recognize an expense at that time for the amount of the repayment. The Water Fund has restricted the cash to be used for repayment to UWCD if the court rules against the City.
The City is also presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that there are no cases that could result in a material adverse financial impact on the City. City management believes that the City's insurance programs are sufficient to cover any potential losses if an unfavorable outcome materializes from any case.
Commitments
The City had the following commitments outstanding at June 30, 2019:
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Due to the economic crisis of 2008, the City entered into an Impact Fee Deferral Loan Agreement with both the Working Artists Ventura (WAV) Apartments Partners for apartment units restricted to low- and very low-income households for $1,311,165 and with WAV Condominiums, LLC for market-rate condominium units for $270,693 to defer a total of $1,581,858 in planning and permitting fees.
The deferred fees for the affordable apartment units are to be repaid with annual principal and interest installments of $48,971 over 55 years beginning in 2010. Revenue is being recognized as payments are received.
The deferred fees for the condominiums have been paid in full.
The Housing Authority of the City of Ventura’s (Housing Authority) Board of Commissioners is appointed by the Mayor, while the Ventura Port District’s Board of Commissioners is appointed by the City Council. However, these entities do not qualify as component units of the City because the City cannot impose its will on these entities and there is no potential for these entities to provide specific financial benefits to, or impose specific financial burdens on, the City. As a result, the Housing Authority and the Ventura Port District are considered as related organizations of the City.
87
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
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The Sustainable Groundwater Management Act (SGMA) requires local water agencies to establish locally controlled groundwater sustainability agencies (GSA) to manage and oversee the future sustainability of groundwater resources. The City is involved in the creation of the Upper Ventura River Groundwater Sustainability Agency and the Mound Basin Groundwater Sustainability Agency.
The Upper Ventura River GSA includes the Casitas Municipal Water District, the City of San Buenaventura, the County of Ventura, the Meiners Oaks Water District and the Ventura River Water District. For fiscal year 2018/2019, the UVRGA approved a budget of $425,000 which included a $50,000 contribution from the City.
The Mound Basin GSA includes the City of San Buenaventura, the County of Ventura, the United Water Conservation District and was recently formed in June 2017. The board adopted a budget of approximately $368,000 for fiscal year 2018/2019 which included a $55,000 contribution for the City of Ventura..
Los Angeles Community Choice Energy Authority (LACCE). The Governor of California signed into law Assembly Bill 117 which authorizes any California city or county, upon governing body approval, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community Choice Aggregation (CCA). With City Council approval, the City along with Ventura County and participating cities within Ventura County, have developed a Business Plan for the formation of the LACCE and CCA program. In accordance with the Joint Powers Agreement, all funding associated with the initial costs to establish the LACCE will be provided by the County of Los Angeles until such a time that the LACCE is operational.
88
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
On June 29, 2011, Assembly Bills I x 26 (the Dissolution Act) was enacted as part of the fiscal year 2011-12 state budget package, which dissolved the California redevelopment agencies.
On June 27, 2012, as part of the fiscal year 2012-13 state budget package, the Legislature passed, and the Governor signed AB 1484, which made technical and substantive amendments to the Dissolution Act based on experience to-date at the state and local level in implementing the Dissolution Act.
In February 2014, Assembly Bill 471 passed which amended several statutes governing the dissolution of redevelopment agencies and allowed infrastructure financing districts (IFDs) to include portions of former redevelopment project areas.
In September 2015, the Legislature passed and the Governor signed SB 107, which made additional changes to the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each Dissolved RDA) was dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA, together with other designated entities, initiated the process under the Dissolution Act to unwind the affairs of the Dissolved RDA. On January 30, 2012, the City elected to serve as the Successor Agency to the San Buenaventura Redevelopment Agency.
The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to assume the housing functions and take over the certain housing assets of the Dissolved RDA. The City elected on January 30, 2012 to serve as the Housing Successor Agency effective February 1, 2012.
As of the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in the Successor Housing Agency Special Revenue Fund in the financial statements of the City. All other assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
In this current year as well as in future years, the County of Ventura will allocate only revenues equal to the amounts necessary to pay annual installment payments on enforceable obligations of the Dissolved RDA. This will continue until all enforceable obligations have been paid in full and all assets of the Dissolved RDA have been liquidated.
On February 1, 2012, as the result of the dissolution of the former Redevelopment Agency, the City elected to become the Successor Agency to the former Redevelopment Agency of the City of San Buenaventura (Successor Agency). The City is acting in fiduciary capacity for the assets and liabilities. Disclosures related to advances receivable, and long term liabilities are as follows:
All debt to be repaid is to be included on the annual Recognized Obligation Payment Schedule (ROPS) that must be approved by the Oversight Board and the DOF. Once approved, the Successor Agency will receive semi-annual disbursements from the Redevelopment Property Tax Fund (RPTTF) through the County of Ventura to cover the Successor Agency's recognized obligation payments and administrative allowance.
The advances between the Agency and the City were established through a cooperation agreement, first approved in 1980, describing the operational support provided to the Agency, and the terms and conditions for repayment of City loans or advances. In June 1992 and May 1997, a restated and amended cooperation agreement was adopted for the purpose of restructuring the financial aspects of the relationship. In 2004, an amended cooperation agreement was adopted to establish a predictable revenue stream into the General Fund and provide for the accumulation of project funds for the Agency. In 2011, a second amended and restated cooperation agreement was adopted to update the status of the amounts paid to the City and the amount of existing indebtedness of the Agency owed to the City.
The 2011 amended agreement called for: 1) the Agency to reimburse the City with interest payment accruing at 5% on the total amount of principal owed by the Agency to the City beginning July 1, 2010; 2) the Agency to reimburse
89
City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
the City with principal installment of $562,364 from May 15, 2011 through May 15, 2015; and 3) in the event there was insufficient tax increment revenue to make a debt payment, the Agency could request to defer that portion that could not be paid in the current year to an upcoming year. Any request was to be presented to City Council at a regular meeting, on or before June 30th of that year.
The state law dissolving the Agency (AB 1X 26) precluded the Agency or the Successor Agency from repaying loans that were made from the City to the Agency (Sponsoring Entity Loans) under the aforementioned agreements. With the passing of SB 107, the interest on such loans was revised to 3% simple interest rate recalculated from the loan origination on a quarterly basis. The City, Successor Agency and Successor Housing Agency have made all necessary adjustments by fiscal year end 2019 to comply with the most current interest rate calculations. This particular Sponsoring Entity Loan will need to be presented to the County-wide Oversight Board and DOF for approval to be added to a future ROPS. The necessary interest rates adjustments have been made and the outstanding balance at June 30, 2019 is $2,547,761.
On January 26, 2008, the City’s Public Art Fund loaned the Agency $1,000,000 at 5% compound interest for a term of 2 years for the Working Artists Ventura (WAV) project. In both 2011 and 2016, amendments were adopted to modify and extend the terms for repayment of the loan. With the most recent amendment the loan was extended for a term that expires on the earlier of (a) December 1, 2017, or (b) thirty (30) days after the last unit in the project is sold. The loan had an interest rate of 3% per annum. With the passing of SB 1077, the interest on such loans was revised to 3% simple interest rate recalculated from the loan origination on an annual basis. With these adjustments, the Successor Agency presented the revised balance of this Sponsoring Entity Loan to the County-wide Oversight Board and DOF to have the debt services added to the FY2019/20 ROPS due February 1, 2019. While the County-wide Oversight Board approved the Sponsoring Entity Loan with the recalculations, the DOF did not approve it. The Successor Agency and City are discussing further options. The necessary interest rates adjustments have been made and the outstanding balance at June 30, 2019 is $1,224,106.
In 2009, the State of California required the former Redevelopment Agency to make certain payment to its county Supplemental Educational Revenue Augmentation Fund (SERAF). In fiscal year 2009-10 the amount paid was $1,153,029 and in fiscal year 2010-11 the amount paid was $236,182. At the time payments were due, the Agency was unable to make its full SERAF payments, and therefore borrowed the amount from the Agency’s Loan and Moderate Income Housing Fund. As a result of the elimination of redevelopment agencies as of February 1, 2012, the Successor Agency is now responsible for repayment of the loan. This loan amount was approved as a Recognized Obligation and is subject to repayment terms as outlined by AB 1484. The first payment was made in fiscal year 2016-2017. The remaining balance as of June 30, 2019 is $ 1,006,237.
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City of San Buenaventura
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
Long Term Liabilities - Long-term liability activity for the year ended June 30, 2019 was as follows:
Tax Allocation Bonds (TABs) in the amount of $8,000,000 were issued by the Agency on June 1, 2003. The bonds were issued to provide funds to: 1) repay certain advances made by the City to the Agency; 2) fund a reserve account for the bonds; and 3) pay issuance costs of the bonds. The 2003 Tax Allocation Bonds are secured by the irrevocable pledge of tax increment revenues payable to the Successor Agency. The bonds are due in annual principal installments of $305,000 to $495,000 through 2028. Interest rates range from 2% to 4.25% and interest is payable semi-annually on February 1st and August 1st. The funding source for the repayment is tax increment revenue or RPTTF since the dissolution of redevelopment agencies. The total amount outstanding as of June 30, 2019, was $3,815,000.
Tax Allocation Bonds (TABs) in the amount of $8,785,000 were issued by the Agency on December 18, 2008. The bonds were issued to provide funds to: 1) repay certain advances made by the City to the Agency; 2) fund a reserve account for the bonds; and 3) pay issuance costs of the bonds. The 2008 Tax Allocation Bonds are secured by the irrevocable pledge of tax increment revenues payable to the Successor Agency. The bonds are due in annual principal installments of $35,000 to $695,000 through 2038. Interest rates range from 3% to 8% and interest is payable semi-annually on February 1st and August 1st. The funding source for the repayment is tax increment revenue or RPTTF since the dissolution of redevelopment agencies. The total principal amount outstanding as of June 30, 2019 was $6,530,000.
Total Successor Agency Debt Service requirements on long-term debt at June 30, 2019, are as follows:
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City of San Buenaventura
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios - Miscellaneous Plan
Last 10 Years*
As of June 30, 2019
Notes to Schedule:
Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies for voluntary benefit changes as well as any offers of Two Year Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions by measurement date. In 2018, there were no significant changes. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
* Fiscal year 2015 was the 1st year of implementation, therefore only five years are shown.
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City of San Buenaventura
As of June 30, 2019
Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only five years are shown.
84
City of San Buenaventura
As of June 30, 2019
Notes to Schedule:
Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes)
Changes in assumptions by measurement date. In 2018, there were no significant changes. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
* Fiscal year 2015 was the 1st year of implementation, therefore only five years shown.
85
City of San Buenaventura
As of June 30, 2019
Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only five years shown.
86
City of San Buenaventura
Required Supplementary Information
For the Year Ended June 30, 2019
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective use of the City's economic resources, as well as establishing that the highest priority objectives are accomplished.
The Annual Budget serves the fiscal period July 1 to June 30 and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees, and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning and controls that permit the evaluation and adjustment of the City's performance.
The City prepares a one-year budget. The annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General, Special Revenue, and Debt Service Funds. All annual appropriations expire at the end of the year. Capital projects funds adopt project-length plans.
The Finance and Technology Department, working with all operating departments and the City Manager, develops a preliminary budget. On or before May 1 each year, the City Manager transmits the proposed budget to the City Council. The proposed budget includes both the sources and types of funds for the proposed expenditures. The City Council conducts public hearings on the proposed budget prior to June 30. On or before July 1, the budget is adopted and enacted by the City Council.
The appropriated budget is prepared by fund, department and division. City department heads may make transfers of appropriations within their department. All transfers between departments require approval of the City Council. The legal level of budgetary control is at the department level for the General Fund and at the fund level for all other governmental funds. Appropriation revisions made during the year ended June 30, 2019, were not significant.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities. The commitments will be re-appropriated and honored in the subsequent year.
87
City of San Buenaventura
Required Supplementary Information
For the Year Ended June 30, 2019
Following are the budget comparison schedules for the General Fund.
88
City of San Buenaventura
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2019
89
City of San Buenaventura
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2019
90
City of San Buenaventura
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2019
91
City of San Buenaventura
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2019
92
City of San Buenaventura
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2019
93
City of San Buenaventura
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2019
94
City of San Buenaventura
For the year ended June 30, 2019
95
City of San Buenaventura
For the year ended June 30, 2019
96
City of San Buenaventura
For the year ended June 30, 2019
97
City of San Buenaventura
For the year ended June 30, 2019
98
City of San Buenaventura
For the year ended June 30, 2019
99
City of San Buenaventura
For the year ended June 30, 2019
100
City of San Buenaventura
For the year ended June 30, 2019
101
City of San Buenaventura
For the year ended June 30, 2019
102
City of San Buenaventura
For the year ended June 30, 2019
103
City of San Buenaventura
For the year ended June 30, 2019
104
City of San Buenaventura
For the year ended June 30, 2019
105
City of San Buenaventura
For the year ended June 30, 2019
106
City of San Buenaventura
For the year ended June 30, 2019
107
City of San Buenaventura
For the year ended June 30, 2019
108
City of San Buenaventura
109
City of San Buenaventura
Combining Statement of Net Position
Internal Service Funds
June 30, 2019
110
City of San Buenaventura
Combining Statement of Net Position
Internal Service Funds
June 30, 2019
111
City of San Buenaventura
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2019
112
City of San Buenaventura
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2019
113
City of San Buenaventura
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2019
114
City of San Buenaventura
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2019
115
City of San Buenaventura
June 30, 2019
116
City of San Buenaventura
For the Year Ended June 30, 2019
117
City of San Buenaventura
118
City of San Buenaventura
119
City of San Buenaventura
120
City of San Buenaventura
121
City of San Buenaventura
122
City of San Buenaventura
123
City of San Buenaventura
124
City of San Buenaventura
125
City of San Buenaventura
126
City of San Buenaventura
127
City of San Buenaventura
128
City of San Buenaventura
129
City of San Buenaventura
130
City of San Buenaventura
131
City of San Buenaventura
132
City of San Buenaventura
133
City of San Buenaventura
134
City of San Buenaventura
135
City of San Buenaventura
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Source: The Comprehensive Annual Financial Report.
136
City of San Buenaventura
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Source: The Comprehensive Annual Financial Report.
137
City of San Buenaventura
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
138
139
City of San Buenaventura
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(1) Long-term note receivables that are restricted were recategorized in 2014 as restricted fund balance instead of nonspendable.
(2) Effective fiscal year 2010, the City implemented GASB Statement No. 54 which changed the classifications of fund balance.
Source: The Comprehensive Annual Financial Report.
140
City of San Buenaventura
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified basis of accounting)
(1) Franchise fees and PEG fees were included in Taxes prior to 2019
Source: The Comprehensive Annual Financial Report.
141
City of San Buenaventura
Assessed Value of Taxable Property
Fiscal Year 2010 to 2019 Taxable Property Values
Notes:
A)This table has been revised in FY 2013, using the report provided by HdL.
In the prior years, the numbers in this table were derived from the Assessment Roll by Prime, which was provided by the Ventura County Assessor's Office.
B)Exempt values are not included in Total.
C)In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed.
D)In FY2014, secured categories have been updated to include additional items due to more detailed information available.
Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Data Source: Ventura County Assessor FY2004/05 - 2011/12 Combined Tax Rolls
HdL,Coren & Cone FY2012/2013
MuniServices, LLC FY2013/19
142
City of San Buenaventura
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
(4) Because basic and debt rates vary by tax rate area, individual rates cannot be summed. The Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.
(5) In FY 2014, Unified School consisted of Mesa Elementary, Oxnard Elementary, Oxnard High School, Rio Elementary and Ventura Unified.
Note:
This table has been revised in FY 2013, using the report provided by HdL. In the prior years, the numbers were calculated from the Direct and Overlapping Debt report that was compiled by the California Municipal Statistics, Inc.
Data Source: Ventura County Assessor FY 2004/05 - 2011/12
HdL, Coren & Cone for FY 2012-13
MuniServices LLC for FY 2013-19
143
City of San Buenaventura
Current Year and Nine Years Ago
Data Source: 2013-2019, 2005-2006 Los Angeles County Assessor data compiled by MuniServices, LLC
144
City of San Buenaventura
Last Ten Fiscal Years
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Source:(1) Ventura County Assessor's Office
(2) Finance and Technology Department, City of San Buenaventura
145
City of San Buenaventura
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: The Comprehensive Annual Financial Report.
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City of San Buenaventura
June 30, 2019
Ratios to 2018-19 Assessed Valuation:
Total Overlapping Tax and Assessment Debt0.45%
Total Direct Debt ($29,135,000)0.17%
Combined Total Debt0.93%
(1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Note: Direct debt details can be found in the notes to the financial statements.
Source: MuniServices, LLC.
147
City of San Buenaventura
June 30, 2019
Ratios to 2018-19 Assessed Valuation:
Total Overlapping Tax and Assessment Debt0.45%
Total Direct Debt ($29,135,000)0.17%
Combined Total Debt0.93%
(1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Note: Direct debt details can be found in the notes to the financial statements.
Source: MuniServices, LLC.
148
City of San Buenaventura
Last Ten Fiscal Years
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The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% of market value.
Each parcel is assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current
full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by
the State of California for local governments located within the state.
Source: (1) Finance and Technology Department, City of San Buenaventura
(2) Ventura County Tax Assessor's Office
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City of San Buenaventura
Last Ten Fiscal Years
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(1) The Operating Expenses inadvertently included depreciation in the prior year statistical tables. Since FY 2012, this table was corrected to properly reflect the correct expense and coverage ratio.
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation expenses.
Source: Finance and Technology Department, City of San Buenaventura
150
City of San Buenaventura
Last Ten Fiscal Years
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(1) The Operating Expenses inadvertently included depreciation in the prior year statistical tables. Since FY 2012, this table was corrected to properly reflect the correct expense and coverage ratio.
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation expenses.
Source: Finance and Technology Department, City of San Buenaventura
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City of San Buenaventura
Last Ten Calendar Years
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(1) Source prior to FY 2010: Ventura City Economic Outlook by the UCSB Economic Forecast Project.
(2) Source from FY 2010 - 2013: HdL Companies.
(3) Source from FY 2014 to 2019: MuniServices, LLC.
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Source: Finance and Technology Department, City of San Buenaventura
153
City of San Buenaventura
Source: Finance and Technology Department, City of San Buenaventura
154
City of San Buenaventura
Current Year and Nine Years Ago
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Source: MuniServices, LLC for 2019
Results based on direct corespondence with City's local businesses.
(1) Total City Labor Force provided by EDD Labor Force Data.
(2) Percent of "Total Employment" as used above represents the total employment of all employers located within City limits.
* Target has two locations.
155
City of San Buenaventura
Operating Indicators
by Function
Last Ten Fiscal Years
(1) Street resurfacing in 2013 and 2010 decreased due to budget reductions and timings. Data in 2013 has been corrected to reflect completed project.
Source: City of San Buenaventura
156
City of San Buenaventura
by Function
Last Ten Fiscal Years
Note: (1) Street miles were miscalculated prior to 2014. The data was corrected in 2014 Comprehensive Annual Financial
Report.
(2) The senior center on Santa Clara St was closed. City consolidated the senior programs into Ventura Avenue Center.
(3) Streetlights increased due to new city developments.
Source: City of San Buenaventura
157
City of San Buenaventura
by Function
Last Ten Fiscal Years
Note: (1) Street miles were miscalculated prior to 2014. The data was corrected in 2014 Comprehensive Annual Financial
Report.
(2) The senior center on Santa Clara St was closed. City consolidated the senior programs into Ventura Avenue Center.
(3) Streetlights increased due to new city developments.
Source: City of San Buenaventura
158
City of San Buenaventura
Last Ten Fiscal Years
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NOTE:
1 HCF = 748 gallons.
The City bills bi-monthly and by hundred cubic feet (HCF).
Rates are based on 3/4" meter, which is the standard household meter size.
The tier structure is in place to encourage wastewater conservation by customers.
(1) Commercial Group 1 (1-8 HCF).
(2) New rate structure implemented; Assume HCF for each tier for comparative purposes.
Source: Ventura Water Department
159
City of San Buenaventura
Last Ten Fiscal Years
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NOTE:
1 HCF = 748 gallons.
The City bills bi-monthly and by hundred cubic feet (HCF).
Rates are based on 3/4" meter, which is the standard household meter size.
The tier structure is in place to encourage wastewater conservation by customers.
(1) Commercial Group 1 (1-8 HCF).
(2) New rate structure implemented; Assume HCF for each tier for comparative purposes.
Source: Ventura Water Department
160
City of San Buenaventura
Current Year and Eight Years Ago
Note: This schedule previously presented the top 10 wastewater customers of the City. Ventura Water staff has interpreted the Red Flags Rules to prohibit the disclosure of any customer information, including name and payment information from all outside reports. Accordingly, the customer name have been replaced with the type of customer for each of these accounts.
(1) 2011 is the only available information.
Source: Ventura Water Department
161
City of San Buenaventura
Last Ten Fiscal Years
(in Hundred Cubic Feet)
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Note:
1 HCF (hundred cubic feet) = 748 gallons
* Correction in FY2012, FY2013 and FY2017 reflect city data only. Prior data in FY2012 and FY2013 reflects city and county.
Source: Ventura Water Department
162
City of San Buenaventura
Last Ten Fiscal Years
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NOTE:
1 HCF = 748 gallons.
The City bills bi-monthly and by hundred cubic feet (HCF).
Rates are based on 3/4" meter, which is the standard household meter size.
The tier structure is in place to encourage water conservation by customers.
* The rate structure changed beginning FY2013.
Source: Ventura Water Department
163
City of San Buenaventura
Last Ten Fiscal Years
NOTE:
1 HCF = 748 gallons.
The City bills bi-monthly and by hundred cubic feet (HCF).
Rates are based on 3/4" meter, which is the standard household meter size.
The tier structure is in place to encourage water conservation by customers.
* The rate structure changed beginning FY2013.
Source: Ventura Water Department
164
City of San Buenaventura
Current Year and Eight Years Ago
Source: Ventura Water Department
165
City of San Buenaventura
Source: The Comprehensive Annual Financial Report.
166
City of San Buenaventura
San Buenaventura Public Facilities Financing Authority Summary of All Issues:
Source: The Comprehensive Annual Financial Report.
167
City of San Buenaventura
Annual Continuing Disclosure Requirements, Continued
2012 Taxable Wastewater Revenues Refunding Bonds, Series A & B
2012 Taxable Wastewater Revenues Refunding Bonds, Series A & B
For the year ended June 30, 2019
168
169
City of San Buenaventura
For the Year Ended June 30, 2019
HISTORIC WASTEWATER SYSTEM USAGE
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HISTORIC WASTEWATER SYSTEM SERVICE CONNECTIONS
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HISTORIC WASTEWATER SYSTEM SERVICE AND FLOW CHARGE REVENUES
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Source: Ventura Water Department and the Comprehensive Annual Financial Report.
170
City of San Buenaventura
For the Year Ended June 30, 2019
Top 10 Wastewater Customers for 2018-2019
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(1) HCF stands for Hundred Cubic Feet.
Source: Ventura Water Department and the Comprehensive Annual Financial Report
171
City of San Buenaventura
Last Ten Fiscal Years
(in Hundred Cubic Feet)
Note:
1 Acre Feet = 435.60 HCF (hundred cubic feet)
Source:(1) FY 2005-2007 data derived from Ventura Water Department
(2) FY 2008-2009 data derived from Official Statement 2012 Water Bond, Series A.
(3) FY 2010-2014 data derived from Official Statement 2014 Water Bond, Series B.
(4) FY 2015-2019 data derived from Water Department. Decreased in water deliveries are due to water
conservations.
172
City of San Buenaventura
Annual Continuing Disclosure Requirements, Continued
2012 Taxable Water Certificates of Participation, Series A & B
2012 Taxable Water Certificates of Participation, Series A & B
For the year ended June 30, 2019
NOTE: Historic System Service Connections can be found in Statistical section, "Operating Indicators" page .
#Excludes depreciation and bond amortization.
(2) Fiscal year 2010 to 2013, data had been revised to reflect information in the 2012 Wastewater Revenue Bonds series C Official Statement.
Source: The Comprehensive Annual Financial Report
173
174
City of San Buenaventura
For the Year Ended June 30, 2019
HISTORIC WATER SUPPLY
(in Acre-feet per year)
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(1) Reflects Casitas Municipal Water District certification letters
PROJECTED WATER SUPPLY
(in Acre-feet per year)
(in Acre-feet per year)
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*Note: These numbers were revised to reflect updated information.
Source: Ventura Water Department
175
City of San Buenaventura
For the Year Ended June 30, 2019
HISTORIC WATER SYSTEM SERVICE CHARGES AND SALES REVENUES
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Source: The Comprehensive Annual Financial Report.
176
City of San Buenaventura
For the Year Ended June 30, 2019
Top 10 Water Customers for 2018-2019
(1) HCF stands for Hundred Cubic Feet.
Note: This schedule previously presented the top 10 water customers of the City. Ventura Water staff has interpreted the Red
Flags Rules to prohibit the disclosure of any customer information, including name and payment information from all out
side reports. Accordingly, the customer names have been replaced with the type of customer for each of these accounts.
Flags Rules to prohibit the disclosure of any customer information, including name and payment information from all out
side reports. Accordingly, the customer names have been replaced with the type of customer for each of these accounts.
Source: Ventura Water Department and the Comprehensive Annual Financial Report
177